.tpx t University Home-BankMobile 1 ?UltiPro M Gmail w Equifax portala Power Bil
ID: 2525471 • Letter: #
Question
.tpx t University Home-BankMobile 1 ?UltiPro M Gmail w Equifax portala Power Bill m1rkedin "of Standard Quantity Standard Price or Standard Cost Per Unit Direct materials Direct labor Varlable overhead or Hours 3.0 ounces 0.9 hours 0.9 hours Rate .40 per ounce $15.00 per hour 22.20 $13.50 $4.50 $5.00 per hour The company reported the following results concerning this product in December 4440 units Inally budgeted output Actual output R?w materials used in production Actual direct labor hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual varlable overhead rate 13,100 ounces 4.196 hours 14.820 ounces $720 per ounce $18.70 per hour $5.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency veriance for December Is: ? $1,938 u O $1.900 F O $1.900 U O $1.938 F O Type here to searchExplanation / Answer
C. $1,900 U
SH = 4,240 units * 0.9 hour per unit = 3,816 hours
Variable overhead efficiency variance = (AH - SH) SR
= (4,196 hours - 3,816 hours) $5 per hour
= (380 hours) $5 per hour = $1,900 U
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